Question

Issue with Economic Impact Payment

Forum|Forum|4 years ago
February 7, 2022
2 replies
0 views

I qualified for the lifetime learning credit for a total of $1328. After the information for the economic impact payment was entered, my refund was reduced by $1400 (the amount I had received). On the IRS website it says that this money should not be counted as income or effect the refund. Why is it doing this to my refund???? It is putting the $1400 into the category "federal taxes you owe."

TurboTax Home & Biz Windows

Z

ZoltanB45

The refund was reduced by $1400 or you owe $1400?

If you had not received the $1400 in 2021, it would have been added to your refund or reduced a tax liability by that amount. Turbo tax assumed you were still owed the $1400 so that was part of the refund you thought you were getting, but when you entered the amount you already got, Turbo Tax then took that amount out of your refund. The $1400 is not a taxable event.

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Lisa_55345Author

I was not expecting to get the $1400 on my refund. I was given the correct amount from the stimulus checks. For some reason turbo tax is STILL deducting $1400 from my total refund. Total should have been around $1900 for federal. Then after I completed the section for the economic impact payment my refund decreased by $1400. If this doesn’t make sense. Please direct me to someone who I can call and talk to to get this fixed before I submit my taxes.

AliciaP1

What @ZoltanB45 is saying is that TurboTax starts off assuming you did NOT receive the stimulus. It shows the $1,400, in your case, as a refund from the start of your return. When you enter your stimulus payment, it just zeroes out the amount. It does NOT add additional tax nor does it incorrectly reduce your refund.

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Stardust818504

I'm having the exact same issue. It's taking $1,400 away from my refund...

AliciaP1

As @KrisD15 noted, TurboTax does not automatically populate the amount you received for the 3rd stimulus payment. Instead, it assumes your payment amount is $0 (since the box is empty until you populate it) and estimates the full amount included in your refund. When you complete the box with the amount you already received, it is merely removing that amount from your refund to properly reflect that you already received. It is not calculating it as taxable.

@Stardust818504

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